Shares in West Coast coal mine developer Bathurst Resources have hit a new low of 50c as it prepares for Environment Court challenges, yesterday laid down for a month-long hearing beginning on October 29 in Christchurch.
Bathurst shares twice hit a high of $1.45 in July last year, but have since steadily declined to trade about 50c yesterday.
The share decline has cost dual-listed Bathurst a 65% fall in market capitalisation, dropping by $661 million to $348 million yesterday, while the Environment Court challenges may have delayed full project start-up by up to six months.
However, Bathurst remains poised to launch for ramping up coal production, with cash in hand and bank facilities totalling about $150 million.
About 14 months ago, two West Coast councils granted Bathurst more than 20 consents in its bid to mine up to two million tonnes annually of specialist hard coking coal for export, mainly off the Denniston Plateau escarpment area above Westport.
The proposal has angered the Royal Forest and Bird Protection Society of New Zealand and the West Coast Environmental Network, both saying the bio-diversity of the plateau was unique and would be ruined by mining activities.
Craigs Investment Partners broker Chris Timms said investors would be waiting for the outcome, after which share value might be re-rated.
